THE CE SHOP REAL ESTATE Practice Exam
Questions with 100% Correct Answers Latest
Versions 2025 GRADED A+
"
amortization schedule/chart - ANS"A table that shows how much of each payment will apply
toward principal and how much toward interest for the loan term; also shows decrease in
loan balance until paid off
Ex. If borrowers want to see how much of their payment is going toward principal, they can
check their mortgage statement, or an amortization schedule.
"
amperage - ANS"Amount of current or electricity flowing through electrical wires
Ex. The pulses were of high voltage but low amperage, which makes them, like static
electricity, safe but an unpleasant experience.
"
anchor store/anchor tenant - ANS"A large commercial tenant that draws in traffic to a mall or
shopping center
Ex. Janice was excited to place her boutique in the same shopping center as Bloomingdales.
Having such a great anchor store nearby was good for business.
"
annexation - ANS"The conversion of personal property into real property
Ex. When Mrs. Goldman planted the rosebushes in her yard, the resultant annexation meant
that the rosebushes were now made part of the property.
"
annual percentage rate (APR) - ANS"A rate derived according to a government formula
that's intended to reflect the true cost of financing that allows consumers to compare loan
products; includes financing fees, so it will always be higher than the actual interest rate on a
loan
Ex. An interest rate of 6% may sound better than one of 6.25%, but it's important to also
compare annual percentage rate (APR) figures to see the true cost of financing.
,"
appraisal - ANS"An estimate of value as of a specific date and for a specific use
Ex. The appraisal on Myra's property was for its use as a bed-and-breakfast today.
"
appraisal contingency - ANS"Contract clause that, if the property doesn't appraise at or
above the sales price, the buyer is allowed to terminate
Ex. If the appraised value is close to the sales price, often the parties can reach agreement.
If not, and an appraisal contingency is in place, the buyer can use the fact that the property
didn't appraise to terminate and receive a refund of earnest money deposited.
"
appraised value - ANS"An estimate of value as of a specific date, and for a specific use
Ex. Barbara refinanced her property two years ago. At that time, the appraised value was
$450,000. If she puts it on the market today, she can't use the appraised value as list price,
because it's no longer valid.
"
appraiser - ANS"One who performs an appraisal
Ex. Vladimir the appraiser is certified to provide real estate appraisals for his clients.
"
appreciation - ANS"Increase in property value
Ex. Due to appreciation, Kerry's investment property had doubled in value over the eight
years she had held it.
"
appurtenances - ANS"Automatic rights inherent in property ownership
Ex. Jason loved being a property owner. He decided not to sell off any of his appurtenances
to others. He kept all of his bundle of sticks together.
"
asbestos - ANS"A fibrous mineral found in rocks and soil, previously used in construction
materials for its insulating and fire-retardant strength
Ex. Many homes built before 1973 likely contain asbestos products. These might be in
insulation, ceiling or floor tiles, or in exterior shingles.
"
asbestosis - ANS"A chronic lung disease caused by breathing asbestos fibers
Ex. Asbestosis makes breathing difficult and can lead to death.
"
assemblage - ANS"The process of combining separate adjacent parcels of land into one
piece
Ex. Through the princple of assemblage, by purchasing several adjoining parcels, the
combined parcel was worth far more.
"
,assessed value - ANS"The dollar amount to which the local tax rate is multiplied to
determine property tax owed
Ex. Although the appraised value of Myra's bed and breakfast was $600,000, her tax
assessed value was only $475,000.
"
assessment - ANS"Charge against a property; for instance, condominiums will have periodic
assessments for maintenance and repairs of common areas
Ex. Before a condominium owner can close on a sale of the condo, the owner must bring all
assessments up to date so the buyer is not left paying for assessments owed from the time
the seller was in possession.
"
asset - ANS"Items of value owned by an individual; often used when qualifying for financing
Ex. Liquid assets include checking and savings accounts. Other assets include real property,
automobiles, and accounts receivable.
"
assignment (rentals) - ANS"The substitution of tenants, putting the responsibility for the
lease contract in the new tenant's hands. Requires written permission of landlord.
Ex. Daniel is moving out of state, and assigns his lease to Benjamin. Benjamin becomes
responsible for the lease.
"
assignment (contracts) - ANS"When a new party to a contract agrees to satisfy the former
party's obligations. Unless there is a novation (a new contract) the original parties remain
liable for the contract terms.
Ex. Ty decided to take an African Safari in the middle of his transaction. His brother agreed
to have the contract assigned to him. However, Ty remains responsible unless a new
contract is drawn up, naming his brother as the contracted party.
"
assignment (mortgages) - ANS"The transfer of a mortgage from the original lender to
another
Ex. Sima must not have been paying attention to her disclosures because she was surprised
with EZ Well Bank assigned her mortgage to another lender.
"
assumable mortgage - ANS"A mortgage that can be assumed when property transfers
ownership (requires borrower to qualify for the loan).
Ex. When interest rates rise, buyers often prefer assumable mortgages at more favorable
rates.
"
assumption - ANS"A buyer agrees, in writing, to take over the sellers' loan payments
Ex. Nicole assumed Matt's loan payments when she bought his house.
"
, auction - ANS"Sale in which highest bidder buys the property
Ex. After the Millers' house was foreclosed on, the lender auctioned it off.
"
avulsion - ANS"A loss of existing land by the sudden change in a watercourse, washing it
away
Ex. Brady was aghast when part of his property washed away in a tidal wave. This avulsion
caused him to lose 15% of his property.
"
balloon mortgage - ANS"A mortgage that has lower initial payments that do not amortize and
provide for a "catch up" lump sum to be paid at a specific time
Ex. Jeb agreed to a balloon mortgage because he knew that in 5 years, when the balloon
payment was due, he would have money available from his trust fund to pay it off.
"
balloon payment - ANS"A lump sum payment, usually at the end of a loan period
Ex. Trinity's loan had low monthly payments, but a large balloon payment at the end of the
loan term.
"
bankruptcy - ANS"The legal process of discharging or restructuring a borrower's debts
Ex. Individuals most commonly file Chapter 7 or Chapter 13 bankruptcy.
"
bargain and sale deed - ANS"A deed where there is at most one warranty: that the current
owner has not encumbered it
Ex. Clancy purchased a property from his aunt that had been unused for a long period of
time. Because his aunt knew nothing about the property, the deed he received was a bargain
and sale deed.
"
base line - ANS"An imaginary line that runs east and west and crosses the principal meridian
at a specified point; it is used by surveyors as a reference point to locate and describe land
under the rectangular survey system.
Ex. Beginning at the initial point and the number 1 on a rectangular system grid, each
township is designated as being a number of six-mile units (""""Townships"""") north or south
of the baseline, and so many six-mile units (""""Ranges"""") east or west of the meridian.
"
basement - ANS"Square footage below ground
Ex. Basements are an area that home inspectors tend to spend a lot of time in due to the
mechanical and electrical and drainage issues often found there.
"
benchmark - ANS"A permanent affixed brass plaque that is numbered and is used as a point
of reference by surveyors when measuring elevation
Questions with 100% Correct Answers Latest
Versions 2025 GRADED A+
"
amortization schedule/chart - ANS"A table that shows how much of each payment will apply
toward principal and how much toward interest for the loan term; also shows decrease in
loan balance until paid off
Ex. If borrowers want to see how much of their payment is going toward principal, they can
check their mortgage statement, or an amortization schedule.
"
amperage - ANS"Amount of current or electricity flowing through electrical wires
Ex. The pulses were of high voltage but low amperage, which makes them, like static
electricity, safe but an unpleasant experience.
"
anchor store/anchor tenant - ANS"A large commercial tenant that draws in traffic to a mall or
shopping center
Ex. Janice was excited to place her boutique in the same shopping center as Bloomingdales.
Having such a great anchor store nearby was good for business.
"
annexation - ANS"The conversion of personal property into real property
Ex. When Mrs. Goldman planted the rosebushes in her yard, the resultant annexation meant
that the rosebushes were now made part of the property.
"
annual percentage rate (APR) - ANS"A rate derived according to a government formula
that's intended to reflect the true cost of financing that allows consumers to compare loan
products; includes financing fees, so it will always be higher than the actual interest rate on a
loan
Ex. An interest rate of 6% may sound better than one of 6.25%, but it's important to also
compare annual percentage rate (APR) figures to see the true cost of financing.
,"
appraisal - ANS"An estimate of value as of a specific date and for a specific use
Ex. The appraisal on Myra's property was for its use as a bed-and-breakfast today.
"
appraisal contingency - ANS"Contract clause that, if the property doesn't appraise at or
above the sales price, the buyer is allowed to terminate
Ex. If the appraised value is close to the sales price, often the parties can reach agreement.
If not, and an appraisal contingency is in place, the buyer can use the fact that the property
didn't appraise to terminate and receive a refund of earnest money deposited.
"
appraised value - ANS"An estimate of value as of a specific date, and for a specific use
Ex. Barbara refinanced her property two years ago. At that time, the appraised value was
$450,000. If she puts it on the market today, she can't use the appraised value as list price,
because it's no longer valid.
"
appraiser - ANS"One who performs an appraisal
Ex. Vladimir the appraiser is certified to provide real estate appraisals for his clients.
"
appreciation - ANS"Increase in property value
Ex. Due to appreciation, Kerry's investment property had doubled in value over the eight
years she had held it.
"
appurtenances - ANS"Automatic rights inherent in property ownership
Ex. Jason loved being a property owner. He decided not to sell off any of his appurtenances
to others. He kept all of his bundle of sticks together.
"
asbestos - ANS"A fibrous mineral found in rocks and soil, previously used in construction
materials for its insulating and fire-retardant strength
Ex. Many homes built before 1973 likely contain asbestos products. These might be in
insulation, ceiling or floor tiles, or in exterior shingles.
"
asbestosis - ANS"A chronic lung disease caused by breathing asbestos fibers
Ex. Asbestosis makes breathing difficult and can lead to death.
"
assemblage - ANS"The process of combining separate adjacent parcels of land into one
piece
Ex. Through the princple of assemblage, by purchasing several adjoining parcels, the
combined parcel was worth far more.
"
,assessed value - ANS"The dollar amount to which the local tax rate is multiplied to
determine property tax owed
Ex. Although the appraised value of Myra's bed and breakfast was $600,000, her tax
assessed value was only $475,000.
"
assessment - ANS"Charge against a property; for instance, condominiums will have periodic
assessments for maintenance and repairs of common areas
Ex. Before a condominium owner can close on a sale of the condo, the owner must bring all
assessments up to date so the buyer is not left paying for assessments owed from the time
the seller was in possession.
"
asset - ANS"Items of value owned by an individual; often used when qualifying for financing
Ex. Liquid assets include checking and savings accounts. Other assets include real property,
automobiles, and accounts receivable.
"
assignment (rentals) - ANS"The substitution of tenants, putting the responsibility for the
lease contract in the new tenant's hands. Requires written permission of landlord.
Ex. Daniel is moving out of state, and assigns his lease to Benjamin. Benjamin becomes
responsible for the lease.
"
assignment (contracts) - ANS"When a new party to a contract agrees to satisfy the former
party's obligations. Unless there is a novation (a new contract) the original parties remain
liable for the contract terms.
Ex. Ty decided to take an African Safari in the middle of his transaction. His brother agreed
to have the contract assigned to him. However, Ty remains responsible unless a new
contract is drawn up, naming his brother as the contracted party.
"
assignment (mortgages) - ANS"The transfer of a mortgage from the original lender to
another
Ex. Sima must not have been paying attention to her disclosures because she was surprised
with EZ Well Bank assigned her mortgage to another lender.
"
assumable mortgage - ANS"A mortgage that can be assumed when property transfers
ownership (requires borrower to qualify for the loan).
Ex. When interest rates rise, buyers often prefer assumable mortgages at more favorable
rates.
"
assumption - ANS"A buyer agrees, in writing, to take over the sellers' loan payments
Ex. Nicole assumed Matt's loan payments when she bought his house.
"
, auction - ANS"Sale in which highest bidder buys the property
Ex. After the Millers' house was foreclosed on, the lender auctioned it off.
"
avulsion - ANS"A loss of existing land by the sudden change in a watercourse, washing it
away
Ex. Brady was aghast when part of his property washed away in a tidal wave. This avulsion
caused him to lose 15% of his property.
"
balloon mortgage - ANS"A mortgage that has lower initial payments that do not amortize and
provide for a "catch up" lump sum to be paid at a specific time
Ex. Jeb agreed to a balloon mortgage because he knew that in 5 years, when the balloon
payment was due, he would have money available from his trust fund to pay it off.
"
balloon payment - ANS"A lump sum payment, usually at the end of a loan period
Ex. Trinity's loan had low monthly payments, but a large balloon payment at the end of the
loan term.
"
bankruptcy - ANS"The legal process of discharging or restructuring a borrower's debts
Ex. Individuals most commonly file Chapter 7 or Chapter 13 bankruptcy.
"
bargain and sale deed - ANS"A deed where there is at most one warranty: that the current
owner has not encumbered it
Ex. Clancy purchased a property from his aunt that had been unused for a long period of
time. Because his aunt knew nothing about the property, the deed he received was a bargain
and sale deed.
"
base line - ANS"An imaginary line that runs east and west and crosses the principal meridian
at a specified point; it is used by surveyors as a reference point to locate and describe land
under the rectangular survey system.
Ex. Beginning at the initial point and the number 1 on a rectangular system grid, each
township is designated as being a number of six-mile units (""""Townships"""") north or south
of the baseline, and so many six-mile units (""""Ranges"""") east or west of the meridian.
"
basement - ANS"Square footage below ground
Ex. Basements are an area that home inspectors tend to spend a lot of time in due to the
mechanical and electrical and drainage issues often found there.
"
benchmark - ANS"A permanent affixed brass plaque that is numbered and is used as a point
of reference by surveyors when measuring elevation
